- A
A system-assigned managed identity on each VM
Why wrong: A system-assigned identity is tied to one VM, so each VM would have a different identity and lifecycle.
- B
A user-assigned managed identity
A user-assigned managed identity is a standalone Azure resource that can be attached to multiple VMs. Because it is not tied to one VM’s lifecycle, it continues to exist even if a VM is rebuilt or replaced. This makes it the best choice when several compute resources need to share the same identity for Azure access. It also simplifies permission management because you grant access once to the shared identity.
- C
A shared VM administrator password
Why wrong: An administrator password is for sign-in to the VM, not for secure shared access to Azure resources.
- D
A storage account SAS token
Why wrong: A SAS token grants limited storage access, but it is a token, not a reusable identity for multiple VMs.
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Three Azure virtual machines in different resource groups must all use the same Azure identity to access a storage account. The identity should keep working even if one VM is rebuilt. What should you use?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
A user-assigned managed identity
A user-assigned managed identity is created as a standalone Azure resource and can be assigned to multiple VMs, even across resource groups. It persists independently of any VM lifecycle, so rebuilding a VM does not affect the identity's availability or its permissions to access the storage account.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
A system-assigned managed identity on each VM
Why it's wrong here
A system-assigned identity is tied to one VM, so each VM would have a different identity and lifecycle.
- ✓
A user-assigned managed identity
Why this is correct
A user-assigned managed identity is a standalone Azure resource that can be attached to multiple VMs. Because it is not tied to one VM’s lifecycle, it continues to exist even if a VM is rebuilt or replaced. This makes it the best choice when several compute resources need to share the same identity for Azure access. It also simplifies permission management because you grant access once to the shared identity.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
A shared VM administrator password
Why it's wrong here
An administrator password is for sign-in to the VM, not for secure shared access to Azure resources.
- ✗
A storage account SAS token
Why it's wrong here
A SAS token grants limited storage access, but it is a token, not a reusable identity for multiple VMs.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse system-assigned managed identities (which are tied to a single VM's lifecycle) with user-assigned managed identities (which are independent resources), leading them to choose option A because they think 'each VM needs its own identity' rather than a shared, persistent one.
Detailed technical explanation
How to think about this question
User-assigned managed identities use Azure AD service principals under the hood, with credentials automatically rotated by Azure. When assigned to a VM, the Azure Instance Metadata Service (IMDS) endpoint provides an access token for the identity, which can be used to authenticate to Azure AD-protected resources like storage accounts via OAuth 2.0. This decouples the identity from the VM's lifecycle, ensuring continuous access even after VM reimaging or replacement.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this AZ-104 question test?
Manage Azure Identities and Governance — This question tests Manage Azure Identities and Governance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: A user-assigned managed identity — A user-assigned managed identity is created as a standalone Azure resource and can be assigned to multiple VMs, even across resource groups. It persists independently of any VM lifecycle, so rebuilding a VM does not affect the identity's availability or its permissions to access the storage account.
What should I do if I get this AZ-104 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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Last reviewed: Jun 11, 2026
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